Shares of Lenovo Group (USOTC:LNVGY) climbed to an all-time high on Tuesday after the world’s largest PC manufacturer reported quarterly earnings that exceeded market expectations, supported by accelerating demand for AI servers and improving conditions in the personal computer industry.
Hong Kong-listed Lenovo shares surged 18% to HK$18.7, marking a record high for the stock and extending gains after a 20% rally on Friday following the company’s earnings release.
Revenue and profit jump on AI infrastructure demand
Lenovo said revenue for the quarter ended in March increased 27% year-over-year to $21.6 billion, beating analyst forecasts.
Net profit rose sharply to $521 million, representing a 479% increase from the same period a year earlier.
The company’s Infrastructure Solutions division, which includes AI servers and data-centre products, recorded revenue growth of 37%, making it Lenovo’s fastest-expanding business segment amid rapidly growing global demand for artificial intelligence computing capacity.
Consumer electronics business benefits from market recovery
Lenovo’s core division covering PCs, tablets and smartphones also received support from resilient consumer spending and market share gains.
The company said customers accelerated purchases ahead of anticipated price increases tied to shortages in memory chips.
AI revenue more than doubles
Lenovo reported that revenue linked to artificial intelligence activities increased 105% over the year and accounted for roughly one-third of total group revenue.
The growth was driven by rising demand across AI-enabled devices, infrastructure solutions and related services.